Reference is invited to the Department of Pension & Pensioners’ Welfare OM No.38/37/2016-P&PW (A) dated-12th May 2017 (copy enclosed) regarding revision of pension of pre-2016 pensioners/family pensioners under 7th CPC recommendations. It has been decided that the Pension/Family Pension w.e.f. 01.01.2016 in respect of all Central civil pensioners/family pensioners, including CAPFs, who retired/died prior to 01.01.2016, will be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the Level/Index corresponding to the pay in the pay scale/pay band and grade pay at which they retired/died. 50% of the notional pay fixed as per the 7th CPC as on 01.01.2016 shall be the revised pension and 30% of this notional pay shall be the revised family pension w.e.f. 1.1.2016. The amount of revised pension/family pension so arrived at shall be rounded off to the next higher rupee

2. In compliance of the above mentioned OM, all the Banks are required to ensure that the correct amount of revised pension and arrears thereto are paid to the pensioners/ family pensioners at the earliest on receipt of Revision Authority from CPAO. Accordingly, Banks are instructed as follows:

i. The functionality of pay fixation in terms of 7th CPC which entails new fields like Level & Index in the Pay Matrix should be incorporated in the software that the Banks are using for pension processing and calculation of arrears.

ii. The credit of revised pension in the bank accounts of pensioners/family pensioners and payment of arrears should be in a time bound manner after receipt of Revision Authority from CPAO (through electronic mode). It should not be later than the next due date of credit of pension in the pensioners accounts.

iii. No arrears on account of revision of Pension/Family pension on notional fixation of pay will be admissible for the period prior to 1.1.2016. The arrears on account of revision of pension/family pension in terms of these orders would be admissible with effect from 01.01.2016. For calculation of arrears becoming due on the revision of pension/ family pension on the basis of this O.M., the arrears of pension and the revised pension/family pension already paid on revision of pension/family pension in accordance with the instructions contained in the DP&PW OM No. 38/37/2016-P&PW (A) (ii) dated 04.08.2016 shall be adjusted.

iv. Banks are required to take immediate corrective action on the Internal Audit reports of CPAO on the audit of the pension paid by the banks to the pensioners/family pensioners under 7th CPC as per the 2.57 multiplication factor based on the DP&PW OM No. 38/37/2016-P&PW (A)(II) dated 04.08.2016 and CPAO ?M No. CPAO/IT & Tech/Revision (7th CPC)/19. Vol-III/2015-16/109 dated 11.08.2016 to ensure correct payment of arrears consequent to receipt of revision authority from CPAO as per (ii) above.

3. Regular review meetings shall be held with the CPPCs and Government Business Divisions of Banks to monitor the progress in this regard. Banks are directed to ensure adequate infrastructure & manpower at their end to process large number of revisions in a short period of time and also ensure regular internal monitoring at their level.